A shareholder of Coinbase has filed a complaint against the company!

Coinbase is facing a derivative action from a disgruntled shareholder regarding its 2021 listing.

Plaintiff alleges that Coinbase misrepresented various facts and engaged in gross mismanagement prior to obtaining a direct public listing in April 2021. Specifically, the shareholder complains that Coinbase has “generated a massive influx” on its stock market through a massive advertising campaign before its listing. This caused a “unprecedented peak in activity” and resulted in service disruptions.

This sudden growth, in turn, broke the growth strategy “flywheel” of the company at the expense of its investors. According to the filing, Coinbase’s efforts to grow its user base have “backfired, leaving investors in the lurch.” [la compagnie] And its new investors damaged and vulnerable to competition.“

In addition to these complaints, the lawsuit also alleges that Coinbase’s public listing violated securities regulations. It alludes to a related U.S. Securities and Exchange Commission action to determine whether customers were permitted to trade in unregistered securities.

Today’s filing targets CEO Brian Armstrong, CFO Alesia Haas and account executive Jennifer Jones. In addition, directors Fred Ehrsam, Marc Andreesen, and Kathryn Haun, Gokul Rajaram, and Fred Wilson are also named as witnesses.

The complaint was filed by shareholder and plaintiff Donald Kocher. Although Donald Kocher’s relationship to Coinbase is unclear, the lawsuit is a derivative action, meaning that it seeks to make the executives pay damages to Coinbase itself.

Various other lawsuits have been filed against Coinbase over its IPO in the past year.

General investor dissatisfaction may be due to the company’s falling share value. COIN’s stock price was $342 when it listed in April 2021; it is now valued at $87.68.